FAQs

How do credit unions benefit from member business lending through the SBA loan programs?
How do credit union members benefit from member business lending?
What are some of MBL’s accomplishments?
What differentiates MBL from its competition?
Does MBL serve only large credit unions?
What kind of training do you offer?
Does MBL only work with SBA loans?
How can I learn more or become a member of MBL?

How do credit unions benefit from member business lending through the SBA loan programs?

MBL believes that the future financial health of credit unions will be dependent on member business lending, especially SBA lending. SBA lending has many advantages over conventional member business lending. The government guaranty reduces risk, substantially increases earnings and improves liquidity through an active secondary market, and best of all has no impact on the regulatory lending cap and limits. SBA loans allow for loans with longer maturities and higher loan amounts than NCUA regulations would otherwise permit.

SBA lending also helps credit unions to fulfill their role in “serving the underserved.” Traditionally, commercial banks have ignored the most important portion of the business lending market, small business.

MBL has found that offering these loan products to credit union members, when their businesses are relatively new, often leads to larger loans and more business services as the businesses mature. Offering these loans and business services also builds loyalty and leads to increased product per household penetration in the form of higher business deposits, greater use of business credit cards, and higher demand for vehicle loans and other traditional credit union products for the business and its employees.

MBL adds value to the entire credit union industry by removing barriers to business lending and business services, allowing credit unions to affordably develop quality business loan portfolios. MBL’s participant credit unions have immediate access to a mature, fully-developed, commercial/SBA department with a proven system that covers all aspects of commercial/SBA lending. In addition, MBL’s strategic relationships with best of class business services providers means that credit unions have access to turnkey solutions for the most important needs of business members. Through cost-sharing, MBL participant credit unions are able to take full advantage of this expertise at a fraction of the cost typically incurred when setting up even a modest SBA and business services department.

How do credit union members benefit from member business lending?

Small business is the backbone of the American economy. According to SBA, American small businesses:

  • Represent 99.7 percent of all employer firms
  • Employ just over half of all private sector employees
  • Pay 44 percent of total U.S. private payroll
  • Have generated 64 percent of net new jobs over the past 15 years
  • Create more than half of the nonfarm private gross domestic product (GDP)
  • Hire 40 percent of high tech workers (such as scientists, engineers, and computer programmers)
  • Made up 97.3 percent of all identified exporters and produced 30.2 percent of the known export value in FY 2007
  • Produce 13 times more patents per employee than large patenting firms

As commercial banks tend to focus on large business, which represents only the top third of the business lending market, small businesses have not received the adequate capital support they need from the banking industry. To meet the needs of small businesses, MBL’s loan delivery methods include secured and unsecured lines of credit, working capital loans, debt refinance loans, and loans for the acquisition of equipment and commercial real estate. In short, MBL enables credit unions to provide loan products and business services that most closely match their business members’ needs.

What are some of MBL’s accomplishments?

MBL processes and services over 36% of all SBA loans generated by credit unions nationally1.

In fact, if all MBL credit unions were a single lender, MBL would be the seventh largest producer nationwide out of 2,000 SBA lending institutions.

What differentiates MBL from its competition?

Our most significant competitive advantage is our staff’s expertise—nearly 100 years of combined experience in business lending! MBL was an early mover in offering business lending services to credit unions. Our model allows participants to behave as if they had their own business lending department, without the $200,000 – $300,000 initial investment and significant yearly expenditures thereafter, which would typically include marketing, processing, underwriting, servicing personnel, as well as software licenses.

Does MBL serve only large credit unions?

No. We have the ability to service the needs of credit unions of all sizes. Our current members range in size from $40 million in assets to over $7 billion, from Florida to Hawaii.

What kind of training do you offer?

We offer a wide variety of training for credit union leaders, business development officers, and branch staff.

Does MBL only work with SBA loans?

No. We also provide services for all types of commercial loans.

How can I learn more or become a member of MBL?

Contact MBL today to get started. Contact Us

1 Source: National Association of Government Guaranteed Lenders (SBA 7(a) Lenders, 1/1/11 – 8/31/11).